Payments can be conducted by a mobile device of a user with a point of sale terminal of a merchant. The mobile device can communicate with the terminal via near field communication (“NFC”), BLUETOOTH, barcode, Wi-Fi, infrared, or any other suitable communication technology. The mobile device can host a payment application, such as a digital wallet application module, that can complete a transaction with the terminal.
The point of sale terminal can obtain the payment information from the mobile device and transmit transaction details to the mobile device. The point of sale terminal can submit the transaction details to the card network to receive payment from the card issuer. A digital wallet application module on the mobile device can support multiple financial accounts and the cards associated with the account. The user can conduct a transaction with different financial instruments, such as credit cards, debit cards, stored value cards, or other payment cards, supported by the application.
Currently, when the user employs a proxy card to conduct the transaction, the user must select a backing payment instrument at the time of purchase with which to conduct the transaction. That is, at the time of purchase, the user must select a backing payment instrument and apply it to the purchase. Alternatively, the user may assign a payment instrument for all transactions until the assignment is changed or provide rules allowing a payment processing system to make the selection. Some payment instruments may be better suited for a particular transaction than other cards. For example, some payment instruments provide better rewards or provide better terms for transactions with certain merchant categories.
Conventional proxy card systems do not utilize user selections of payment instruments and other related transaction details to predict the preferred payment instrument and provide the predicted payment instrument to the user.